RioCan Real Estate Investment Trust has announced a new commercial acquisition in Toronto, attesting to the sustained strength of the market and the asset class.
Earlier this week, the trust confirmed its purchase of a 50% co-ownership interest in 2323 Yonge Street.
The transaction, which involved an eight-storey Class B office building, was valued at $27.1 million. The asset offers roughly 67,400 square feet of commercial space
“RioCan believes that there is substantial potential in the property, in part due to the significant demand for office space in the Yonge Eglinton corridor. All of the property’s leases are set to expire over the next five years and have sizeable rent growth potential on lease renewals,” the company stated in its announcement.
RioCan CEO Edward Sonshine hailed the acquisition as a vital addition to the REIT’s commercial footprint in the robust Toronto market.
“This acquisition enhances RioCan’s dominant presence in the Yonge Eglinton transit hub right at the heart of mid-town Toronto. RioCan owns not only the northeast and northwest corners of the thriving intersection through ePlace and Yonge Eglinton Centre, but now owns another key asset further north on Yonge Street in this major urban corridor.” Sonshine said.
“It represents another important step in expanding our dynamic portfolio of urban mixed-use assets in Canada’s major markets, particularly in the ever growing Greater Toronto Area.”https://ca.res.keymedia.com/files/image/iStock-toronto_506340858%20(500%20x%20334).jpg